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Tax&Compliance

Federal Court knocks back tax agents’ appeal, termination stands

After firing warning shots about lodgement and compliance requirements in recent months, the Tax Practitioners Board has had a win with the Federal Court of Australia dismissing an appeal by tax agents.

Tax agents Hemanshu Juneja, and his associated corporate entity Three Wickets, had an appeal dismissed by the court, which affirms the decisions of the TPB to terminate their tax agent registrations. Mr Juneja was also the sole director of Cudmores Integrated Business Solutions.

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The TPB had made the call in 2014 to terminate Mr Juneja’s tax agent registration. The regulator believed his failures as director of Cudmores to ensure that it lodged tax returns, business activity statements and paid its tax liabilities on time contributed to him not being a “fit and proper person.”

The termination of Three Wickets’ tax agent registration also followed on this basis.

In its dismissal, the court noted that a sole director of a company is responsible for ensuring that the company meets its tax obligations — which acts as a stark warning for those in similar compliance messiness.

Further, chair of the TPB Ian Taylor reminded tax agents that the regulator must be satisfied that they are a fit and proper person for their registration to remain valid.

“Companies must ensure that all their directors meet this requirement regardless of whether they are individually registered with the TPB,” he said.

“Tax practitioners need to understand that there are serious consequences for failing to meet the fit and proper person requirements.

“This applies to all individual tax practitioners, and each individual partner and director in respect of partnership and company registrations.”

Mr Taylor has signalled to Accountants Daily in recent months that lodgement remains high on the regulator’s agenda, particularly in its compliance activity.

However, more broadly, the regulator is satisfied that the tax and BAS agent communities alike are largely compliant.